AUD/USD Forecast – Aussie Continues to Trade in Range

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen down to the 0.65 level, an area that has obviously a large round psychologically important aspect to it, but it’s also an area where we’ve seen some action in the past. So, it’ll be interesting to see how this plays out. I think you have a situation where traders are simply prepping for the Federal Reserve meeting on Wednesday, and therefore they probably don’t want to get too overly exposed to risk on.

So, with that being the case, the Australian dollar of course takes a little bit of a hit makes perfect sense, as we continue to see a lot of concern out there about whether or not the Federal Reserve is going to cut rates later this year or not. At this point in time, it seems very likely, but at the end of the day, the reality is that this is a market that will more likely than not see those happen, but it might be months down the road.

That being the case, I think you have to look at this through the prism of a market that is still very much stuck where it started out. I think the consolidation between 0.6650 and 0.6450 continues to be the main story here. With that being said, I am somewhat ambivalent about this pair at the moment. I just don’t know if you want to get overly aggressive. With this being the case, I am more or less on the sidelines, although I would look at extreme areas of consolidation as potential buying or selling opportunities.

Right now, though, it certainly looks as if there’s just no real momentum, but I would keep an eye on this later in the session. Perhaps we will try to make a move back to the 50-day EMA. If you’re a range-bound trader, this might be your pair, but if you’re more of a swing trader like I am, you’re going to struggle to really make big moves here.

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